From the time you make an offer on a house to the time you actually take possession, weeks can pass and a lot of things must occur. During this time, there are issues that might arise that could cause you to not go through with buying the house. What are these issues? Well, there are quite a few, but here are three of the top ones.
You Cannot Get a Loan
Imagine if you started working on the closing process for the house you are trying to buy but then find out from your lender that you cannot get the loan. What would you do? Would you have another way to finance the house? You could always search for a new lender, but there is a good chance you could run into the same problem.
If you are not able to finance the house through a loan, there is probably no way you would be able to buy the house. If this occurs, you would have to back out of the deal.
You might be able to prevent this from occurring by doing two things. The first involves getting preapproved for the loan. This preapproval may not guarantee with complete certainty that you will get the loan, but it will help you know if you currently qualify or not. Secondly, avoid any change in your life that could change your finances or credit.
The House Appraisal Is Low
A second reason the deal could fall through is one that is out of your hands, and this one is due to a low appraisal. You might want to purchase the house even if the appraisal is low, but your lender might no longer want to give you a loan for it. If the lender will still issue you a loan for this house, they will probably reduce the amount they will loan you to buy the house.
The House Condition Is Not What It Was Listed As
The other common reason for a deal to fall through is home inspection issues. If you find out that the home is not in good condition and that it is not in the condition the seller told you it was in, it might be wise to choose another house to buy. If you continue with this deal, you may want to lower the price you will pay for it or ask the seller to fix things in it.
To make sure your deal goes through, take your time when choosing a house and make sure you protect your credit while you are shopping. Talk to your real estate agent to learn more about this if you have other questions.